Europe faces threat of renewed recession as growth figures fall

A pedestrian walks past a shop selling all goods for one euro in MadridDenis Doyle/Getty Images

The embattled eurozone is facing a return to recession, according to figures showing poor growth and rising unemployment across the 17-member region.

Olli Rehn, the EU Economic and Monetary Affairs Commissioner, admitted: “Growth has stalled in Europe and there is a risk of a new recession.” He announced that economic growth across the countries that use the single currency was expected to fall considerably from the 1.8 per cent GDP growth predicted in the spring to 0.5 per cent next year.

Growth across the larger European Union is also expected to decline, from an earlier prediction of 1.9 per cent to 0.6 per cent. Unemployment is likely to remain at about 9.5 per cent, higher than in the United States.